In The First Half Of This Year, The Domestic Textile And Garment Industry Continued To Seek Bottom.

The one or two quarter Spin The total income of apparel industry listed companies decreased by 1.61% and 4.30% respectively, while net profit fell by 0.62% and 2.37% respectively. Among them, manufacturing revenue grew steadily, the growth rate slowed down compared with the middle of last year, net profit decreased year by year, gross margin and net interest rate slipped slightly, consumer income decreased year-on-year, net profit growth slowed down, gross margin and net interest rate increased.

The performance adjustment rate of key consumer companies is higher than that of the industry: in the one or two quarter, the income of key consumer enterprises decreased by 9.39% and 6.66%, respectively, and net profit decreased by 14.42% and 24.81% respectively.

The balance sheet and cash flow statement show that corporate financial indicators continue to deteriorate.

whole industry In the first half of the year, the average inventory grew by 6.12% over the same period last year, and the growth rate was higher than that of the same period last year. The inventory turnover rate was 1.25 times, the lowest in the last 3 years (1.5 times last year). Meanwhile, the growth rate of accounts receivable slowed down to 4.37% (13.99% in the same period last year), and the turnover rate of accounts receivable fell to 4.29 times from 4.56 times in the same period last year.

The turnover rate of inventory and accounts receivable of textile plates (all manufacturing) was similar to that of the whole industry, 0.15 times and 0.67 times respectively. It is worth noting that the operating net flow of textile sector enterprises has improved after 12 years (net value is greater than net profit), and has declined since the 13 mid term.

These ones here display Manufacturing textile enterprises are also facing difficulties.

In terms of key consumer enterprises, accounts receivable decreased by 7.26% in the first half of this year, and accounts receivable turnover was flat compared with the same period last year. The stock market has increased by 10.08%, and the inventory turnover rate has dropped to 0.82 times from 0.98 times in the same period last year. Moreover, the net operating cash flow has continued to be lower than net profit. Accounts receivable turnover stability shows that enterprises adopt a more prudent business strategy, despite prudence, but inventories continue to grow, inventory pressure is still huge.

The external factors that the industry continues to explore is that exports are constrained by the slow recovery and rising costs of external demand, and domestic demand is being impacted by foreign brands and electric providers. The internal mechanism is that the extensive expansion of enterprises in the early years leaves behind worries and the successful spanformation takes some time.

At present, the macro-economy is facing a decline in growth rate. The reform dividend has not yet been clearly manifested. We expect that the textile and garment industry will linger in the second half of the year, and there will be signs of recovery after the Spring Festival in 2015.